Maruti’s loss may depress its valuation
New Delhi: With its planned divestment in the country’s largest automobile manufacturer, Maruti Udyog Limited, commencing, the auto major has reported large losses, to the tune of Rs. 128 crore, for the first seven months of its operations this financial year.

The reported loss only confirms the market reports that competition and a declining market share had begun to affect the company, all of which are going to affect the company’s valuation. According to financial analysts, based on the company’s 1999-2000 performance, the company could be valued anywhere between Rs. Rs 4,950 crore and Rs 6,600 crore.

The Union Cabinet is studying ways of divesting its stake in Maruti, but has not yet revealed how big a stake it plans to sell or whether or not it would issue shares or sell it to one buyer.
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Tata Steel partners Sail and Kalyanis for B2B marketplace
Calcutta: With nearly 50 per cent of the market share in steel and allied sectors, Tata Steel, Sail and the Kalyani group have joined hands to launch a B2B marketplace called, metaljunction.com.

The joint venture will see the Tatas and Sail hold 40 per cent each in the venture, with the balance being held by Kalyani Steels.

To be fully functional by February next year, the company would offer a completely neutral and independent platform for trading in steel and allied materials. The joint venture is to have professional management and a completely independent board.
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Shah Rukh Khan acquires stake in multimedia company
Mumbai: Joining the likes of International Finance Corporation and Spectranet, noted Bollywood filmstar, Shah Rukh Khan, is acquiring a strategic 16 per cent stake in Maveric Multimedia Services, a software company that streams live content over the internet.

The investors are putting in $10m in the company, which has been formed by breakaway group from Pentamedia Graphics. The fledgling software firm is being incubated by Chennai-based Maveric Systems.

The film actor will play an active role in helping the new company identify and choose the right content partners.|

IFC, the international major, is likely to bring in global expertise based on a similar investment it has already made abroad. This will help MMS with its international alliances and keep it in pace with technology developments happening in this area.
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United Breweries plans import of wines
Bangalore: Having gained leadership position in the beer and hard liquor market, the Vijay Mallya-controlled, United Breweries, is trying to do the same in the wine market. The company strongly believes that the category is growing very fast, especially among women.

According to Mr. Mallya, the group will import wine in bulk into the country, bottle it and market it aggressively. The company is said to have three top class suppliers — Australia, South Africa and California — to choose from, though the final choice may be made between South Africa and California.

India’s wine market at the lower end is estimated to be in the range of 1.5 lakh cases per annum, with the estimated market size for the premium and super premium ends being 40,000 and 10,000 cases. India’s main wine markets are in Maharashtra, Tamil Nadu (mainly for value wines), Karnataka, metropolitan Calcutta, Goa and Pondicherry.
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FDA approval for Cheminor ulcer drug
Mumbai: The US regulatory authority, Food and Drug Administration, accorded approval to an abbreviated new drug application for antiulcerant ranitidine hydrochloride capsules being manufactured by Cheminor Drugs. The approval is for the drug in strengths of 150 mg and 300 mg. The company is planning to launch its capsules with immediate effect.

The company has also received tentative approvals of another antiulcerant, famotidine (20 and 40 mg).
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Tyco in South Korean JV for electronic parts
New Delhi: Tyco Electronics Corporation, a Bangalore-based company, has recently entered into a 50-50 joint venture with South Korean company, Elentec, to manufacture electronic components for consumer appliances and computer peripherals.

The joint venture, to be christened, Tei Technology, is set to manufacture manufacture CRT sockets, remote control units, DG coils, set-top boxes, cable assemblies and wire harnesses for both colour television and computer monitors.
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Dell picks SeraNova B2B initiative
Hyderabad: Leading computer company, Dell Computers, has chosen eBusiness consulting services provider SeraNova Inc to assist its enterprise customers in integrating their procurement of systems with the latter’s internal order processing systems.

SeraNova will provide the systems integration consulting and development services necessary to link the customer’s internal purchasing systems with Dell’s own order processing systems.
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IBM appoints Tech Pacific for Rs/6000 servers
New Delhi: In an agreement signed recently, IBM India has appointed Tech Pacific Ltd for marketing of IBM Rs/6000 UNIX servers and IBM Storage systems devices in the country.

With the signing of this agreement, Tech Pacific gets the distinction of being the first distributor in India for the Rs/6000 server (now called the Server P series).
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Bombay Dyeing releases value by selling apartments
Mumbai: In what could be considered to be a reaction to the hostile takeover bid mounted on it, Nusli Wadia-controlled, Bombay Dyeing, releasing value in the company by selling off its real estate.

The company has begun by selling several apartments it owns in the residential complex, Nestle Apartments, in Central Mumbai. Real estate industry sources put the price for the combined transaction at Rs 2 crore.

According to informed sources, it is understood that the company plans to sell at least 15 flats that it currently owns. If the deal materialises, the company would rake in around Rs 15-18 crore based on the current market value of Rs 4,800 per sq ft.
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Nestle to venture into butter, yogurt
Moga: FMCG major, Nestle India, is planning to enter into new product segments like butter, yogurt, flavoured milk, besides launching new variants of Maggi noodles and ketchup in the coming months. The company has decided to invest over Rs. 80 crore in its Moga facility for this purpose.

With the success of its ultra heat treated milk, the company is planning to expand the reach of the milk to more markets in the country. Besides, it is also gearing up for the launch of its its third water brand — Pure Life — in the low-end segment.

The Moga plant, Nestle’s first in India set up in 1961, has now grown to be the Swiss food manufacturer’s one of the 10 largest factories in the world.
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L&T Capital being repositioned as an investment bank
Mumbai: In keeping with the recommendations made by the Boston Consulting Group, engineering giant, Larsen & Toubro, is working on a strategy to re-position, L&T Capital, a wholly owned subsidiary of its finance arm, L&T Finance, from being its in-house treasury management arm to a full fledged investment bank.

The plan envisages L&T Capital, to step into equity broking, besides undertaking merchant banking assignments on behalf of issuers of equity and debt, including investment banking.

The company, which is likely to be headed by Mr. M Pushpangadan, who resigned as the managing director of UTI Securities, will also, to a limited extent, do treasury management for the group.

BCG had also suggested that the paid-up equity capital of L&T Capital, currently at Rs 5 crore, may be hiked through either L&T re-capitalising it or an outside partner investing in the firm.
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Enron, and partners, fund cost overrun at Dabhol
Mumbai: Energy major, Enron, and its two partners in the Dabhol Power Company, General Electric and Bechtel, have together decided to bring in an additional $115 million as equity for funding the cost overrun in the second phase of the Dabhol power project.

The three promoters are to bring in the money in the same proportion as their existing shareholding in the company. At present Enron holds 80 per cent stake, while GE and Bechtel has 10 per cent each.

The cost overrun is primarily on account of the increase in the cost of constructing a breakwater at the project site at Ratnagiri in Maharashtra due to certain geological changes and was complete beyond the control of the company.
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